- Gold loans continued to expand their share in India’s retail credit, reaching 12.1% as of Jun’26 chipping off share from home loans. Beyond gold loans, sole‑proprietor lending (led by LAP and BL) remained resilient, growing ~7% QoQ in June’26. This quarter’s momentum was further supported by consumer durables (+21.4% QoQ) and auto loans (+5.5% QoQ).
- Consumer durables emerge as the largest entry point for new-to-credit borrowers
CRIF High Mark today released its report How India Lends – Credit Landscape in India, in collaboration with Global Fintech Fest 2026, presenting insights of Q1 FY27 based on data as of June 2026. The report highlights continued expansion in India’s retail credit market, with growth led by consumer durable loans, sole-proprietor lending and auto loans, alongside sustained momentum in gold loans. Credit supply continues to deepen in semi-urban and rural India while Uttar Pradesh (UP) and Rajasthan (RJ) are emerging as high-growth engines across many asset classes (home, personal, auto, and consumer durable loans).
The report notes that India’s retail credit portfolio expanded to ₹178.6 lakh crore as of Jun’26, registering 19.2% year-on-year growth and 4.7% quarter-on-quarter growth. Consumer durable loans recorded the highest growth at 36.6% YoY and 21.4% QoQ, followed by sole-proprietor loans, which grew 24.4% YoY and 6.6% QoQ, and auto loans, which grew 18.0% YoY and 5.5% QoQ. Gold loans also remained a key growth driver, with portfolio growth of 16.4% QoQ. Within consumption lending, gold loans increased their portfolio share from 8.9% in Jun’25 to 12.1% in Jun’26, while home loans accounted for 25.5% of consumption lending, reflecting a changing product mix.
Growth is increasingly shaped by higher ticket‑size loans, particularly in home and auto segments, alongside gold loans backed by rising collateral. . In home loans, loans above ₹75 lakh reached 41.0% of originations value in Q1 FY27, up from 36.8% in Q4 FY25, while the ₹5 lakh–₹35 lakh segment continued to account for 52.6% of originations volume. In auto loans, the ₹20 lakh-plus segment rose to 18.2% of originations value. Gold loans above ₹5 lakh accounted for around 40% of originations value, despite representing only 9.1% of total loans. However, in personal loans, loans below ₹5 lakh increased to 50.7% of originations value.
Highlights from How India Lends:
- Broad-based Growth across retail lending segments
Retail credit growth remained broad-based in Q1 FY27. Consumer durable loans were the fastest-growing product, expanding 36.6% YoY, 21.4% QoQ, while auto loans grew 18.0% YoY, 5.5% QoQ. Personal loan portfolio outstanding increased 13.8% YoY, 3.1% QoQ while home loans grew 10.5% YoY, 2.4% QoQ. Two-wheeler loans also expanded 12.4% YoY to ₹1.89 lakh crore, although QoQ growth remained flat amid declines in parts of western and central India.
- Gold loans remain a key growth driver
Gold loans continued to strengthen their position within consumption lending, with their portfolio share rising to 12.1% in Jun’26 from 8.9% a year earlier. Gold loan originations excluding priority sector gold loans rose 47.3% YoY to ₹6.47 lakh crore in Q1 FY27, compared with ₹4.39 lakh crore in Q1 FY26. The average ticket size stood at ₹2.17 lakh, up 37.5% YoY although QoQ declined 1.5% after the seasonal surge and potential regulatory adjustments around LTV (Loan to Value). The top five southern states contributed more than 70% of gold loan portfolio outstanding.
- Credit penetration deepens beyond the top 100 Cities
Credit supply continued to expand beyond the Top 100 cities, with two-wheeler loans recording the highest penetration at 53%. Consumer durable penetration rose to 43.5% in Q1 FY27 from 40.8% in Q1 FY26, while home loans stood at 19.5%. Uttar Pradesh and Rajasthan emerged as key growth markets, while southern states continued to dominate gold lending with over 70% of portfolio outstanding.
- New-To-Credit borrowers continue to enter through accessible products
Consumer durable loans remained the leading entry product for New-To-Credit borrowers, accounting for 45.5% of NTC originations by volume, followed by gold loans at 18.3%. The trend highlights the role of accessible lending products in expanding formal credit access.
- Higher ticket sizes shape lending growth
Higher ticket sizes are becoming an important factor of retail credit growth. Home loan originations above ₹75 lakh increased their value share to 41.0%, while auto loans above ₹20 lakh reached 18.2%. Gold loans above ₹5 lakh represented around 40% of originations value despite accounting for only 9.1% of originations volume. In two-wheeler lending, the average ticket size increased to ₹94,967 in Q1 FY27, up 1.6% YoY.
- Originations momentum across key segments
Originations remained resilient across key segments. Personal loan originations grew 34% YoY in Q1 FY27 to ₹3L Cr(vs. ₹2.2L Cr in Q1 FY26), while QoQ growth moderated by 6.1% driven by seasonal factors, while consumer durable originations rose 32.1% QoQ. Gold loan originations, excluding priority sector gold loans, increased 47.3% YoY, despite moderating from Q4 FY26 levels.
- Asset quality remains broadly stable, with pockets to monitor
Pan-India asset quality remained stable, with delinquencies improving or holding steady across most segments. However, elevated PAR 31–90 in select low-ticket auto and personal loans, higher-ticket consumer durables, and affordable housing warrants continued monitoring.
The Q1 FY27 edition highlights how India’s lending landscape is evolving with changing demand patterns and access. As lenders expand into newer borrower segments and geographies while adapting to shifts in ticket sizes and product preferences, sustaining growth with sound underwriting and portfolio discipline will remain critical to the next phase of retail credit expansion.